Gift cards & gift PPIs in India
Gifting money as a card is popular, but the rules are surprisingly strict. Here's the honest picture: the ₹10,000 cap, the difference between a store gift card and an RBI gift PPI, and the tax angle for corporate gifting.
Store gift card vs RBI gift PPI
Closed-loop store gift card: usable only at the issuer's own store or brand group. Because it never pays third parties, it is usually not a payment system and needs no RBI authorisation. Amazon, Flipkart and most retail gift cards work this way.
RBI gift PPI: a special-purpose PPI that can be used at a defined merchant set. It is capped at ₹10,000, is non-reloadable, cannot be bought with cash, and cannot be used for cash withdrawal or person-to-person transfers. Validity is typically one year.
Never buy discounted gift cards from unofficial sellers. "Buy ₹5,000 gift card for ₹4,000" offers are a classic laundering and mule scheme. Buy only from the issuer or an authorised retailer.
Gift card limits & hard rules
| Rule | Gift PPI (RBI) | Store gift card (closed-loop) |
|---|---|---|
| Maximum value | ₹10,000 | Set by the brand (usually well under ₹10,000 per card) |
| Reloadable? | No | Usually no |
| Buy with cash? | No | Depends on the retailer |
| Cash withdrawal / P2P | Not allowed | Not allowed |
| Validity | Typically 1 year | Set by the brand (check expiry rules) |
| RBI authorisation | Yes — issued by authorised PPI players | Usually not needed (never pays third parties) |
Corporate gift cards & the ₹15,000 tax exemption
Gifts from an employer to an employee are exempt from tax up to ₹15,000 in a year under the income-tax perquisite rules. Beyond that threshold, the value can be taxable as a perquisite. This is a junction of PPI rules and income-tax rules — tax treatment changes, so do not copy older articles. For HR teams, see our corporate cards guide for the full picture including meal and incentive wallets.
For gifters: if you're buying for an individual, keep it under the cap, buy from the official issuer, and keep the receipt. If a seller promises to "convert" a gift card to cash, that's a red flag — report it.
Gift card FAQs
Generally no — domestic gift PPIs and store gift cards work in India only. For spending abroad, use a forex card or a virtual card.
It depends on the issuer's terms. RBI gift PPIs must give expiry notice and refund "back to source". Store gift cards follow the brand's policy — check before expiry. See our how-to on expired balances.
GST treatment of gift cards has changed over time. Currently the sale of a gift card is generally treated as a supply of money and may be outside GST, but loading and issuance fees can attract tax. Verify the current GST position with a tax professional.